Arena Minerals Inc. (“Arena” or the “Company”) (TSX-V: AN | OTCQX: AMRZF) is pleased to announce evaporation pond construction has been completed at its Sal de la Puna Project (“SDLP Project”) located in the Pastos Grandes basin within Salta province, Argentina. The evaporation pilot pond covers a total of 10,000 m2 and has been filled with raw brine from the Almafuerte claim block. The evaporation pond has been designed to produce >35% lithium chloride (“LiCl”) (6% lithium) from SDLP raw brine.

The pilot pond was built according to engineering design utilizing only in-situ material. Soil mechanics showed favourable parameters such as soil type, particle size distribution and compaction properties making the Blanca Lila formation, which covers most of Almafuerte and Graciela claim blocks, an attractive site for the construction of a production complex. The favourable soil conditions eliminated the need for geotextile layers under the liner, reducing the overall cost of construction. The pond has been filled to operating brine height with Pastos Grandes raw brine averaging 558 mg/l Li. A permanent salt floor is being deposited over the liner to protect the liner during harvesting. Once the permanent salt floor design thickness has been reached design specifications, internal walls shall be constructed using waste sodium chloride covered with HDPE.

Eduardo Morales, Executive Chairman of Arena, commented, “We are extremely pleased with progress to date at SDLP. Construction of the ponds was completed on schedule and budget, setting a solid foundation for the completion of detailed engineering of commercial sized ponds. We are in the process of selecting engineering firms for the design of a 40,000 tonne per annum lithium chloride facility, which will incorporate the results of an economic assessment including capital and operating cost estimates.”

An aerial image of the completed pond prior to filling with SDLP brine can be found below.

 

Environmental, Social & Governance Update

Since the acquisition of the Sal de la Puna project Arena has developed a healthy relationship with local communities. The strength and support shown by the local communities for the Project is also a testament to the long-standing relationships existing with Arena’s operations team, many of whom have been operating in the immediate region for over a decade.

Arena’s business model and processing approach provides an environmentally friendly and sustainable alternative to the more conventional liming process that traditionally requires a chemical plant on site. In aiming to produce >35% LiCl directly from ponds, Arena does not require a more environmentally sensitive liming plant while minimizing the use (to almost zero consumption) of both power and fresh water thus reducing our carbon footprint. The Arena process is powered by solar energy (evaporation) and does not employ fresh water. The only power and water required is for the camp and minor ancillary services, such as pumping. Like most lithium brine projects in the Puna region of Argentina, Sal de la Puna is located in a high-altitude desert where both power and water are scarce commodities.

A production Environmental Impact Study (“EIS”) has been submitted to the mining authorities in Salta for the permitting of a 40,000 tonne per annum lithium chloride facility. The study evaluates the impact of constructing 490 hectares of lined evaporation ponds, thirteen production wells, and related ancillary infrastructure on the Almafuerte and Graciela claim blocks. These claim blocks are primarily covered by the Blanca Lila geological formation where the 1-hectare pilot pond has been constructed with favourable results. The lithium bearing aquifers targeted by the well field are interpreted as hydraulically separate from any surface waters and therefore of minimal impact to the basin habitats. The Company is working closely with the authorities on minimizing any potential impacts in a timely manner while ensuring the local communities and provincial governments benefit from value-add lithium products.